Central Banks
Powell Steers Policy Debate With Clear Signal on June Rate Pause
- Fed chair says officials can ‘afford to look at the data’
- Rate peak could be lower than otherwise due to tighter credit
Federal Reserve Chair Jerome Powell gave a clear signal he is inclined to pause interest-rate increases next month, taking command of the policy debate after several officials suggested they wanted to keep hiking.
“We’ve come a long way in policy tightening and the stance of policy is restrictive and we face uncertainty about the lagged effects of our tightening so far and about the extent of credit tightening from recent banking stresses,” Powell told a Fed conference Friday in Washington.